CoinGecko's user base has surged following the acquisition of CoinMarketCap. Is the data website undergoing a transformation?

After Binance confirmed the acquisition of CoinMarketCap (CMC), another independent data website, CoinGecko, has become the top choice among the public. However, can user habits really change in a short period of time and propel CoinGecko to the top spot?

Will CoinGecko Become the Preferred Choice?

Since the news broke last Tuesday that cryptocurrency exchange Binance would acquire cryptocurrency data website CoinMarketCap (CMC) for $400 million, the acquisition has become the focus of the global cryptocurrency community. Most people are concerned that the data on CMC will no longer be fair and reliable. Some claim that the exchange will use the platform to promote its platform token or IEO projects launched through the platform.

Interestingly, after news of the acquisition, another cryptocurrency data company, CoinGecko, saw a significant increase in active users. CoinGecko co-founder TM Lee stated:

"We will definitely see some reactions in the cryptocurrency community, and CoinGecko will become people's preferred choice because it is more independent and fair."

Founded in 2014, CoinGecko's business is very similar to CMC, offering even more diverse data than CMC. Last year, the team also introduced a data metric called "Trust Score" that helps users better assess the trading liquidity of exchanges and address the issue of "wash trading" criticized on the CMC platform.

Furthermore, the platform recently released an e-book titled "How To DeFi," providing a detailed introduction to decentralized finance.

User Habits Will Be the Biggest Obstacle

Taylor Monahan, founder of MyCrypto, stated in an interview that following Binance's acquisition, other data platforms will have a significant opportunity to position themselves as "independent aggregator websites." However, the key is whether they can change user habits. As a pioneer in the industry, CMC has dominated the cryptocurrency data field for seven years, establishing a strong moat. Monahan said:

"People have short memories, and user habits are deeply ingrained, so the concerns about how Binance will utilize CoinMarketCap and whether it will have a long-term, real impact on the market remain to be seen."

However, Monahan further pointed out that due to the current long-term bearish trend in the market, traffic to data websites across the industry may be severely affected. This poses a crisis but also an opportunity for these data websites to reshuffle. Anyone has the chance to take the lead after this bear market.

Related Reading

• Snagging $400 Million! Binance Confirms Acquisition, CoinMarketCap's Mysterious Founder Announces Direct Retirement
• Binance Reportedly Set to Acquire CoinMarketCap, Acquisition Price Could Reach $400 Million

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